Demographics
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The development community has increased its focus on higher education over the past two decades, recognizing that education can contribute to building up a country’s capacity for participation in an increasingly knowledge-based world economy and accelerate economic growth. The value added by higher education to economies—job creation, innovation, enhanced entrepreneurship, and research, a core higher education activity—has been highlighted by an important body of literature. 

Yet experts remain concerned that investing in higher education in less-developed countries may lead to a “brain drain”--highly educated students and professionals permanently leaving their home countries. In the 2016 Kauffman report on international science, technology, engineering, and math (STEM) students in the United States, for instance, 48 percent among a randomly sampled survey of 2,322 foreign doctoral students in the United States wished to stay there after graduation, with only 12 percent wanting to leave and 40.5 percent being undecided. In fact, high percentages of foreign students in the United States with doctorates in science and engineering continue to stay in the United States, creating a brain drain problem for the sending countries. 

Because students tend to move from developing to developed countries to study, brain drain is more problematic for developing countries. In addition, given accelerated talent flows around the world and the increasing integration of less-developed countries into global value chains, the negative impact of brain drain could be further amplified. As demonstrated by the studies reviewed in this paper, the migration of high-skilled professionals from developing countries may indeed create brain drain for them, but at the same time can significantly enhance the social and economic development of their home countries, regardless of whether or not they decide to return home, thus complicating what used to be seen as a straightforward case of brain drain. 

From Brain Drain to Brain Circulation and Linkage examines how brain drain can contribute to development for the sending countries through brain circulation and linkage. It provides an overview of the conceptual framework to map out high-skilled labor flows, identifies empirical cases and policies in Asia that demonstrate high-skilled migrant professionals actually make significant contributions to their home countries (beyond monetary remittances), summarizes key social and economic enabling factors that are important in attracting and motivating migrant high-skilled professionals to return or engage with their home countries, and concludes with policy implications and suggestions for further research based on these findings.

 

 

 

 

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Gi-Wook Shin
Rennie Moon
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978-1-931368-49-0
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Ph.D

Huashan Chen joins the Walter H. Shorenstein Asia-Pacific Research Center as visiting scholar.  He currently serves as Associate Professor at the National Institute of Social Development, Chinese Academy of Social Sciences.  He is also the Director of Social Development and Evaluation Lab and Vice Director of the Research Center for Social Climate.  He will be conducting research on Chinese state bureaucracy and personnel flows.

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The same institutions that enabled China’s massive urbanization and spurred its economic growth now require further reform and innovation.

To address the issues facing the next phase of the nation’s transformation, the National New Urbanization Plan (2014–20) set ambitious targets for sustainable, human-centered, and environmentally friendly urbanization. This volume explores the key institutional and governance challenges China will face in reaching those goals. Its policy-focused contributions from leading social scientists in the United States and China explore aspects of urbanization ranging from migration and labor markets to agglomeration economies, land finance, affordable housing, and education policy. Subjects covered in the eleven chapters include:

  • Institutional problems leading to fiscal pressures on local governments and unequal provision of social services to migrant families
  • The history of land financing and threats to its sustainability
  • The difficulty of sorting out property rights in rural China
  • How administrative redistricting has allowed the urbanization of geographical administrative places to outpace the urbanization of populations within those areas
  • How the hukou system may not be the sole, or even primary, mechanism restricting migrants from public goods, such as their childrens’ education 
  • Whether the nation’s food security is threatened by its ongoing urbanization
  • The current state of the provision of low-income housing, and future challenges
 
Karen Eggleston is the director of the Asia Health Policy Program at the Shorenstein Asia-Pacific Research Center (Shorenstein APARC). She is a fellow at Stanford's Center for Health Policy/Primary Care and Outcomes Research and a faculty research fellow of the National Bureau of Economic Research.
Jean C. Oi is the William Haas Professor in Chinese Politics in the department of political science and a senior fellow of the Freeman Spogli Institute for International Studies at Stanford University. Oi is the founding director of the China Program at Shorenstein APARC and the Lee Shau Kee Director of the Stanford Center at Peking University.
Wang Yiming is vice president and senior research fellow at the Development Research Center of the State Council, People’s Republic of China. Previously he was with the National Development and Reform Commission (NDRC), where he served for many years as executive vice president of the Academy of Macroeconomics Research and deputy secretary general of the NDRC.
 

Examination copies: Shorenstein APARC books are distributed by the Brookings Institution Press. You can obtain information on obtaining an examination copy at their website.

 

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Karen Eggleston
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A new book published by the Shorenstein Asia-Pacific Research Center (APARC) explores the future of China’s urbanization. Addressing the complex challenges facing Chinese cities will require updated institutions and unparalleled innovation, researchers say.

China’s growth in cities has been unprecedented over the past decade, and the urbanization policies the government put in place, while achieving notable successes, continue to face systemic obstacles that challenge the effectiveness of central and local governments. How the government will resolve the complex sets of conflicting interests will considerably shape Chinese society and politics for decades.
 
That is the premise of a new book co-edited by Karen Eggleston, senior fellow in Stanford’s Freeman Spogli Institute for International Studies; Jean C. Oi, the William Haas Professor in Chinese Politics; and Yiming Wang, deputy director general and senior research fellow at the State Council Development and Research Center.
 
In the book Challenges in the Process of China’s Urbanization, eleven chapters authored by 21 authors feature urbanization challenges ranging from property rights and affordable housing to food security and the environment.

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“Urbanization is not merely a process of financial engineering or rational decision-making, but a complicated ‘dance’ of power and politics,” the editors write in the introductory chapter.
 
The book is one of two publications that emerged from a conference in May 2014 at the Stanford Center at Peking University, that was part of a joint five-year research initiative between the Shorenstein Asia-Pacific Research Center and the National Development and Reform Commission (NDRC) – a government agency in China that formulates and implements strategies of national economic and social development.  
 
Wang, who was the deputy chief of staff at the NDRC and executive director of its Institute of Macroeconomic Research, facilitated ongoing scholarly exchanges, including workshops and conferences as well as joint fieldwork in China. At one point, the NDRC came to the Bay Area to interview local government officials about urbanization and affordable housing policies.  
 
Eggleston and Oi responded to a few questions about the book.
 
What patterns are shaping urbanization in China?
Oi: A primary pattern shaping China’s urbanization is the movement of people from rural areas to megacities – Beijing, Shanghai and elsewhere.  There also is movement from poorer to richer areas within the countryside. Rural to urban migration has been taking place in China since the 1970s, but the difference now is that the government is encouraging it. The Chinese government has an officially sanctioned program that is advocating migration. A second pattern shaping China’s urbanization is administrative redistricting. Redistricting is a government-led process that changes the administrative makeup of a municipality. For example, areas originally designated as ‘rural’ can be redistricted to qualify as ‘urban.’ Additionally, smaller cities can become larger by absorbing surrounding areas. Counties can also be combined into districts.
 
Why are cities and counties pursuing redistricting?
Oi: One of the main factors driving redistricting in China is the perks and power that are linked to the size of an administrative unit. Government officials in charge of smaller cities or counties have incentives to become larger. The larger the municipality, the more power and resources the municipality has. Smaller cities that become larger cities gain resources; yet on the other hand, counties that become part of a district lose certain local-level rights. Municipalities are essentially competing with each other. The book dives into the incentive structures at play and other political economy issues embedded in the urbanization process.
 
What kind of disciplinary approaches are undertaken in the book?
Eggleston: One of the book’s strengths is its array of disciplinary approaches. Drawn primarily from the social sciences, the book includes theoretical and empirical analyses of evidence gathered from case studies and fieldwork. 
 
Oi: The book is a true collaboration of scholars from the United States and China. About half of the chapter authors are officials from the National Development and Reform Commission (NDRC), including our co-editor, Yiming Wang, who was NDRC deputy-secretary when we did the work for the volume. Each chapter attempts to offer a balanced perspective of the policy implications of China’s urbanization experience at both national and local levels.

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Karen Eggleston, FSI senior fellow and director of the Asia Health Policy Program, speaks on a panel about demographic change and health at the conference, "Challenges in Process of Urbanization: China in Comparative Perspective," Stanford Center at Peking University, May 2014.


What do you hope the book will achieve?

Oi: The book offers an analysis of the intricacies of and potential solutions to problems related to the process of China’s urbanization. We hope the book taken as a whole gives a sense of the magnitude of these problems, why there are no easy solutions, as well as what will be needed to address them going forward.  Some of the solutions are not just about money. 
 
Eggleston: The book aims to sketch an interesting picture of the varied aspects of China’s urbanization. Each chapter looks at a select issue, for example, land financing, spatial growth and housing security, and sets it in the broader context of urbanization. We purposely decided not to cover everything that falls under the banner of urbanization. Most of the topics could very well be made into a whole book alone. We hope the book will enliven conversation amongst scholars, policy influencers and China and urbanization enthusiasts.
 

What do “people-centered” solutions to urbanization challenges in China include?

Eggleston: “People-centered” is the term used in China’s official urbanization plan, the New National Urbanization Plan, published in 2014. We defined the term “people-centered” to include what makes life in urban areas attractive. “People-centered” urbanization emphasizes well-being and the factors that lead to a good livelihood, including access to public goods. For example, from a health perspective, cities around the world were historically less healthy locations to live in during the industrial revolution, before basic knowledge of how to control infectious disease with clean water and other population health measures. Now, cities can be healthier places to live in compared to rural areas. The Chinese government has a successful record of building basic infrastructure, but faces many challenges in harnessing the requisite resources to innovate and truly achieve people-centered development.

 

"In trying to reach a public goal like low-income housing, the Chinese government is trying to set up an incentive system so that the goal can be reached not just with taxpayer money but also by bringing in the private sector to build housing in a way that includes affordable units and doesn’t lead to segregation."  

     — Karen Eggleston; FSI senior fellow, Asia Health Policy Program director

 
An issue highlighted in the book is China’s household registration system. Why is it an issue and what is being done to address it?
Oi: Because China’s urbanization has been so rapid, institutions have not yet fully caught-up. There is a disjuncture between the institutions that exist and those that are actually necessary. One pressing example is the household registration system. Citizens who live in rural areas have a different kind of residency status than citizens in urban areas. Everyone has rights, but rights differ depending on where primary residence was originally listed. A Chinese citizen is only able to enjoy all of his or her rights where he or she is registered. So migrants tend to lose out as soon as they move away from their home locality. However, the central government has started to make changes to this system. For example, children of migrants now have access to public services such as primary education. Some localities have begun to implement a points-based system wherein families accumulate points over time and, after reaching a certain level, become eligible for citizenship in that place of residence.
 
Can you describe the state of housing in Chinese cities?
Eggleston: Affordable housing is a key issue of urbanization across the world, not just in China. So, the glass is half-full or half-empty depending on how you look at it. China has been remarkably successful in avoiding the development of large urban slums common in lower income countries with rapid urbanization. That said, problems associated with housing are not going to go away quickly. The macro nature of China’s population amplifies the problem, and coincides with a dramatic increase in housing prices. Continued government investment in affordable housing will help address scarcity, and could help tackle interrelated problems such as assisted living for the elderly population in China.
 
Oi: The central government began to offer affordable housing in 2007 with the intention of providing housing for the neediest portion of the population. In theory, it works, but in reality, it has faults. Supply and demand sometimes isn’t in sync. For example, quotas were used as a way to decide the location of its affordable housing, but some cities found that housing units remain unused. The local government builds a number of affordable housing units but then discovers no one wants them because commercial housing is less expensive or factories provide dormitory space. Part of this mismatch in supply and demand is rooted in the issue of resident permits. In most cases, the neediest portion of the population is typically migrants but they are not eligible for affordable housing in the cities where there is most need for low cost housing such as Beijing or Shanghai. As a result, migrants often live in inadequate housing in city centers – small, windowless spaces with many people living together in one room. 
 
One of the chapters in the book focuses on food security. As Chinese migrants continue to move from rural to urban areas, are fears of declining food security founded?
Eggleston: Food security is an important issue. In the book, one chapter written by 9 co-authors applies rigorous methods to understand whether urbanization threatens food security in China. They found that fear of declining food security is mostly overblown. Continued government investment in agricultural production such as irrigation systems can help address those fears, and help enable sustainable food production.

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Jean Oi, FSI senior fellow and director of the China Program, (Center), and Xueguang Zhou, FSI senior fellow and professor of sociology, (Left of Center), take a tour of housing developments during fieldwork with the National Development and Reform Commission in August 2012. Oi is speaking with one of the village leaders about a "new rural community" concept developed in a housing development in Chengdu, where this photo was taken.


Another chapter in the book references pollution. Beijing has faced unprecedented levels of air pollution lately. Does it coincide with urbanization?

Eggleston: Although issues of pollution and “green growth” merit separate book-length treatment and are not central to this book, pollution illustrates the broader issue of concentrations of industry and people living in one area. Everyone has to share public space. Both a migrant and someone working at the top levels of government in Beijing breathe the same air. Things that are less visible like water quality are avoidable by some of the population, but air pollution is not, and therefore, quickly reveals how hard it is for the government to efficiently fix a problem. Policies to mitigate pollution often take awhile to have an effect, and in the mean time, people begin to doubt government accountability. Local governments have made strides within the past few years in revising evaluation structures so that officials are incentivized to react to public problems like air pollution. Historically, an official’s performance was based largely if not solely on GDP growth of his or her municipality, but it has since expanded to include other factors such as health insurance enrollment.
 
Infrastructure spending has been a driver of China’s economic growth. Has China’s rush to build quickly come at the expense of safety?
Oi: Economic growth is intimately tied to the process of China’s urbanization. Growth of cities has been driven by the ambitions of local officials who want to see their municipalities expand. But the question remains over how they’re going to finance rising needs for and costs of public goods. Each municipality receives funding from the central government and it’s based on the quantity of citizens – a number that excludes migrants. Any migrant is then – administratively speaking – a burden on the system. Municipalities have to determine how they’re going to fund public goods. This is where fiscal politics comes in. China’s fiscal system is really the most important institution in need of reform. Each chapter of the book touches upon the issue of public funding in some way.
 
Eggleston: China is generally known for its investment in infrastructure projects, but the goal of rapid growth can seemingly clash with a concern for safety. One of the main themes of the book is to think carefully about the incentives that govern the process. I think that theme certainly rings true with regard to infrastructure and safety. Put simply: if officials and contractors do not have incentive to prioritize safety, then safety problems are going to arise. The Chinese government efforts to develop and improve specific regulatory structures should continue, as several authors point out in different chapters of the book.

 

"Economic growth is intimately tied to the process of China’s urbanization. Growth of cities has been driven by the ambitions of local officials who want to see their municipalities expand. But the question remains over how they’re going to finance rising needs for and costs of public goods."  

     — Jean C. Oi; Stanford professor of political science, China Program director

 
How can a balance be struck between public and private sector led projects that address urbanization challenges?
Oi: The Chinese government is increasingly looking to establish public-private partnerships as a way to deal with urbanization challenges. Affordable housing is one area that could experiment further with the public-private model. Instead of going to local governments, the central government is now talking directly with housing developers. They say to the developers “we’ll give you permission to develop a housing estate, but within that housing estate, you’re going to have to set aside ‘X’ number of units for affordable housing.” Depending on the city, this approach has had mixed effects. Some high-end housing developers don’t want to include affordable housing because the price per unit could drop as a result.
 
Eggleston: It’s critical to think about public-private partnerships in the context of urbanization-related policy goals. I think we’re bound to see them grow. The government has an opportunity to harness the innovation of the private sector through such partnerships.
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Lisa Griswold
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Japanese and American scholars and practitioners gathered at Stanford recently for “Womenomics, the Workplace, and Women,” a full-day conference seeking to find pathways to advance opportunity for women in society and the workplace.

Nearly 75 people attended the public conference, which included 20 speakers and was co-sponsored by Stanford’s Shorenstein Asia-Pacific Research Center and the Clayman Institute for Gender Research, as well as the United States-Japan Foundation and the Japan Society for the Promotion of Science.

Takeo Hoshi, director of the Japan Program at Shorenstein APARC, noted that women in Japan and the United States have long encountered obstacles related to gender. Currently, the United States and Japan rank 45th and 111th, respectively, on the Global Gender Gap Index.

“The conference is a unique opportunity for experts from Japan and Silicon Valley to learn from each other and their countries’ recent attempts to tackle gender diversity, particularly in the areas of business and technology,” Hoshi said.

The Japanese government’s inclusion of women’s advancement in its economic growth strategy 'Abenomics,' named after Prime Minister Shinzo Abe, is “one of the few good policies,” Hoshi said, yet complex cultural constraints and workplace policies need to change in order for it to work. Similarly, in Silicon Valley, while strides have been made, gender diversity still lags in corporate leadership and boards of directors especially in the areas of STEM (science, technology, engineering and mathematics).

Panelists shared perspectives on women’s status, leadership and work-life balance in both countries throughout four panel discussions led by Hoshi, and Shelley Correll, director of the Clayman Institute and professor of sociology; Kenji Kushida, Japan Program research scholar; and Mariko Yoshihara Yang, a visiting scholar at Shorenstein APARC.

One broad theme that emerged in the discussions: gender equity progress takes time. Closing the gender gap will come incrementally and a multidisciplinary approach could help the process. 

Areas highlighted by the panelists included a need to address unconscious bias and to improve programs that support women in the workplace as well as those seeking to re-enter the labor force after taking time off, such as increased access to childcare and elimination of “evening work” for those who hold full-time jobs.

Panelists suggested expanding educational opportunities, mentorship and peer-to-peer networks among women, as well as training centered on gender equity for all employees. Quotas and government incentives for organizations that adopt equity practices were also proposed to achieve greater female representation.

Additional discussions took place between the panelists in a closed-door workshop the following day. A report that details outcomes and a set of policy recommendations is expected in 2017; the full list of panelists, topics addressed and conference agenda can be viewed here.

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Lisa Griswold
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As a new U.S. administration assumes office next year, it will face numerous policy challenges in the Asia-Pacific, a region that accounts for nearly 60 percent of the world’s population and two-thirds of global output.

Despite tremendous gains over the past two decades, the Asia-Pacific region is now grappling with varied effects of globalization, chief among them, inequities of growth, migration and development and their implications for societies as some Asian economies slow alongside the United States and security challenges remain at the fore.

Seven scholars from Stanford’s Shorenstein Asia-Pacific Research Center (APARC) offered views on policy challenges in Asia and some possible directions for U.S.-Asia relations during the next administration.

View the scholars' commentary by scrolling down the page or click on the individual links below to jump to a certain topic.

U.S.-China relations

U.S.-Japan relations

North Korea

Southeast Asia and the South China Sea

Global governance

Population aging .

Trade


U.S.-China relations

By Thomas Fingar

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Managing the United States’ relationship with China must be at the top of the new administration’s foreign policy agenda because the relationship is consequential for the region, the world and American interests. Successful management of bilateral issues and perceptions is increasingly difficult and increasingly important.

Alarmist predictions about China’s rise and America’s decline mischaracterize and overstate tensions in the relationship. There is little likelihood that the next U.S. administration will depart from the “hedged engagement” policies pursued by the last eight U.S. administrations. America’s domestic problems cannot be solved by blaming China or any other country. Indeed, they can best be addressed through policies that have contributed to peace, stability and prosperity.

Strains in U.S.-China relations require attention, not radical shifts in policy. China is not an enemy and the United States does not wish to make it one. Nor will or should the next administration resist changes to the status quo if change can better the rules-based international order that has served both countries well. Washington’s objective will be to improve the liberal international system, not to contain or constrain China’s role in that system.

The United States and China have too much at stake to allow relations to become dangerously adversarial, although that is unlikely to happen. But this is not a reason to be sanguine. In the years ahead, managing the relationship will be difficult because key pillars of the relationship are changing. For decades, the strongest source of support for stability in U.S.-China relations has been the U.S. business community, but Chinese actions have alienated this key group and it is now more likely to press for changes than for stability. A second change is occurring in China. As growth slows, Chinese citizens are pressing their government to make additional reforms and respond to perceived challenges to China’s sovereignty.

The next U.S. administration is more likely to continue and adapt current policies toward China and Asia more broadly than to pursue a significantly different approach. Those hoping for or fearing radical changes in U.S. policy will be disappointed..

Thomas Fingar is a Shorenstein Distinguished Fellow and former chairman of the U.S. National Intelligence Council. He leads a research project on China and the World that explores China’s relations with other countries.


U.S.-Japan relations

By Daniel Sneider

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U.S.-Japan relations have enjoyed a remarkable period of strengthened ties in the last few years. The passage of new Japanese security legislation has opened the door to closer defense cooperation, including beyond Japan’s borders. The Japan-Korea comfort women agreement, negotiated with American backing, has led to growing levels of tripartite cooperation between the U.S. and its two principal Northeast Asian allies. And the negotiation of a bilateral agreement within the Trans-Pacific Partnership (TPP) talks brought trade and investment policy into close alignment. The U.S. election, however, brings some clouds to this otherwise sunny horizon.

Three consecutive terms held by the same party would certainly preserve the momentum behind the ‘pivot to Asia’ strategy of the last few years, especially on the security front. Still there are some dangers ahead. If Japan moves ahead to make a peace treaty with Russia, resolving the territorial issue and opening a flow of Japanese investment into Russia, that could be a source of tension. The new administration may also want to mend fences early with China, seeking cooperation on North Korea and avoiding tensions in Southeast Asia.

The big challenge, however, will be guiding the TPP through Congress. While there is a strong sentiment within policy circles in favor of rescuing the deal, perhaps through some kind of adjustment of the agreement, insiders believe that is highly unlikely. The Sanders-Warren wing of the Democratic party has been greatly strengthened by this election and they will be looking for any sign of retreat on TPP. Mrs. Clinton has an ambitious agenda of domestic policy initiatives – from college tuition and the minimum wage to immigration reform – on which she will need their support. One idea now circulating quietly in policy circles is to ‘save’ the TPP, especially its strategic importance, by separating off a bilateral Japan-U.S. Free Trade Agreement. Tokyo is said to be opposed to this but Washington may put pressure on for this option, leaving the door open to a full TPP down the road. .

Daniel Sneider is the associate director for research and a former foreign correspondent. He is the co-author of Divergent Memories: Opinion Leaders and the Asia-Pacific Wars (Stanford University Press, 2016) and is currently writing about U.S.-Japan security issues.


North Korea

By Kathleen Stephens

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North Korea under Kim Jong Un has accelerated its campaign to establish itself as a nuclear weapons state. Two nuclear tests and multiple missile firings have occurred in 2016. More tests, or other provocations, may well be attempted before or shortly after the new American president is inaugurated next January. The risk of conflict, whether through miscalculation or misunderstanding, is serious. The outgoing and incoming administrations must coordinate closely on policy and messaging about North Korea with each other and with Asian allies and partners.

From an American foreign policy perspective, North Korea policy challenges will be inherited by the next president as “unfinished business,” unresolved despite a range of approaches spanning previous Republican and Democratic administrations. The first months in a new U.S. president’s term may create a small window to explore potential new openings. The new president should demonstrate at the outset that North Korea is high on the new administration’s priority list, with early, substantive exchanges with allies and key partners like China to affirm U.S. commitment to defense of its allies, a denuclearized Korean Peninsula and the vision agreed to at the Six-Party Talks in the September 2005 Joint Statement of Principles. Early messaging to Pyongyang is also key – clearly communicating the consequences of further testing or provocations, but at the same time signaling the readiness of the new administration to explore new diplomatic approaches. The appointment of a senior envoy, close to the president, could underscore the administration’s seriousness as well as help manage the difficult policy and political process in Washington itself.

2017 is a presidential election year in South Korea, and looks poised to be a particularly difficult one. This will influence Pyongyang’s calculus, as will the still-unknown impact of continued international sanctions. The challenges posed by North Korea have grown greater with time, but there are few new, untried options acceptable to any new administration in Washington. Nonetheless, the new administration must explore what is possible diplomatically and take further steps to defend and deter as necessary. .

Kathleen Stephens is the William J. Perry Distinguished Fellow and former U.S. ambassador to the Republic of Korea. She is currently writing and researching on U.S. diplomacy in Korea.


Southeast Asia and the South China Sea

By Donald K. Emmerson

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The South China Sea is presently a flashpoint, prospectively a turning point, and actually the chief challenge to American policy in Southeast Asia. The risk of China-U.S. escalation makes it a flashpoint. Future historians may call it a turning point if—a big if—China’s campaign for primacy in it and over it succeeds and heralds (a) an eventual incorporation of some portion of Southeast Asia into a Chinese sphere of influence, and (b) a corresponding marginalization of American power in the region.

A new U.S. administration will be inaugurated in January 2017. Unless it wishes to adapt to such outcomes, it should:

(1) renew its predecessor’s refusal to endorse any claim to sovereignty over all, most, or some of the South China Sea and/or its land features made by any of the six contending parties—Brunei, China, Malaysia, the Philippines, Taiwan, Vietnam—pending the validation of such a claim under international law.

(2) strongly encourage all countries, including the contenders, to endorse and implement the authoritative interpretation of the U.N. Convention on the Law of the Sea (UNCLOS) issued on July 12, 2016, by an UNCLOS-authorized court. Washington should also emphasize that it, too, will abide by the judgment, and will strive to ensure American ratification of UNCLOS.

(3) maintain its commitment to engage in publicly acknowledged freedom of navigation operations (FONOPs) in the South China Sea on a regular basis. Previous such FONOPs were conducted in October 2015 by the USS Lassen, in January 2016 by the USS Wilbur, in May 2016 by the USS Lawrence, and in October 2016 by the USS Decatur. The increasingly lengthy intervals between these trips, despite a defense official’s promise to conduct them twice every quarter, has encouraged doubts about precisely the commitment to freedom of navigation that they were meant to convey.

(4) announce what has hitherto been largely implicit: The FONOPs are not being done merely to brandish American naval prowess. Their purpose is to affirm a core geopolitical position, namely, that no single country, not the United States, nor China, nor anyone else, should exercise exclusive or exclusionary control over the South China Sea.

(5) brainstorm with Asian-Pacific and European counterparts a range of innovative ways of multilateralizing the South China Sea as a shared heritage of, and a resource for, its claimants and users alike. .

Donald K. Emmerson is a senior fellow emeritus and director of the Southeast Asia Program. He is currently editing a Stanford University Press book that examines China’s relations with Southeast Asia.


Global governance

By Phillip Y. Lipscy

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The basic features of the international order established by the United States after the end of World War II have proven remarkably resilient for over 70 years. The United States has played a pivotal role in East Asia, supporting the region’s rise by underpinning geopolitical stability, an open world economy and international institutions that facilitate cooperative relations. Absent U.S. involvement, it is highly unlikely that the vibrant, largely peaceful region we observe today would exist. However, the rise of Asia also poses perhaps the greatest challenge for the U.S.-supported global order since its creation.

Global economic activity is increasingly shifting toward Asia – most forecasts suggest the region will account for about half of the global economy by the midpoint of the 21st century. This shift is creating important incongruities within the global architecture of international organizations, such as the United Nations, International Monetary Fund and World Bank, which are a central element of the U.S.-based international order and remain heavily tilted toward the West in their formal structures, headquarter locations and personnel compositions. This status quo is a constant source of frustration for policymakers in the region, who seek greater voice consummate with their newfound international status. 

The next U.S. administration should prioritize reinvigoration of the global architecture.  One practical step is to move major international organizations toward multiple headquarter arrangements, which are now common in the private sector – this will mitigate the challenges of recruiting talented individuals willing to spend their careers in distant headquarters in the West. The United States should join the Asian Infrastructure Investment Bank, created by China, to tie the institution more closely into the existing architecture, contribute to its success and send a signal that Asian contributions to international governance are welcome. The Asian rebalance should be continued and deepened, with an emphasis on institution-building that reassures our Asian counterparts that the United States will remain a Pacific power. .

Philip Y. Lipscy is an assistant professor of political science and the Thomas Rohlen Center Fellow. He is the author of the forthcoming book Renegotiating the World Order: Institutional Change in International Relations (Cambridge University Press, 2017).


Population aging

By Karen Eggleston

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Among the most pressing policy challenges in Asia, U.S. policymakers should bear in mind the longer-term demographic challenges underlying Asia’s economic and geopolitical resurgence. East Asia and parts of Southeast Asia face the headwinds of population aging. Japan has the largest elderly population in the world and South Korea’s aging rate is even more rapid. By contrast, South Asian countries are aging more gradually and face the challenge of productively employing a growing working-age population and capturing their “demographic dividend” (from declining fertility outweighing declining mortality). Navigating these trends will require significant investment in the human capital of every child, focused on health, education and equal opportunity.

China’s recent announcement of a universal two-child policy restored an important dimension of choice, but it will not fundamentally change the trajectory of a shrinking working-age population and burgeoning share of elderly. China’s population aged 60 and older is projected to grow from nearly 15 percent today to 33 percent in 2050, at which time China’s population aged 80 and older will be larger than the current population of France. This triumph of longevity in China and other Asian countries, left unaddressed, will strain the fiscal integrity of public and private pension systems, while urbanization, technological change and income inequality interact with population aging by threatening the sustainability and perceived fairness of conventional financing for many social programs.

Investment in human capital and innovation in social and economic institutions will be central to addressing the demographic realities ahead. The next administration needs to support those investments as well as help to strengthen public health systems and primary care to control chronic disease and prepare for the next infectious disease pandemic, many of which historically have risen in Asia. .

Karen Eggleston is a senior fellow and director of the Asia Health Policy Program. She is the editor of the recently published book Policy Challenges from Demographic Change in China and India (Brookings Institution Press/Shorenstein APARC, 2016).


Trade

By Yong Suk Lee

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Portrait of Yong Suk Lee.
Trade policy with Asia will be one of the main challenges of the new administration. U.S. exports to Asia is greater than that to Europe or North America, and overall, U.S. trade with Asia is growing at a faster rate than with any other region in the world. In this regard, the new administration’s approach to the Trans-Pacific Partnership will have important consequences to the U.S. economy.

Anti-globalization sentiment has ballooned in the past two years, particularly in regions affected by the import competition from and outsourcing to Asia. However, some firms and workers have benefited from increasing trade openness. The U.S.-Korea Free Trade Agreement of 2012, for example, led to substantial growth in exports in the agricultural, automotive and pharmaceutical sectors. Yet, there are winners and losers from trade agreements. Using an economist’s hypothetical perspective, one would assume firms and workers in the losing industry move to the exporting sector and take advantage of the gains from trade. In reality, adjustment across industries and regions from such movements are slow. Put simply, a furniture worker in North Carolina who lost a job due to import competition cannot easily assume a new job in the booming high-tech industry in California. They would require high-income mobility and a different skill set.

Trade policy needs to focus on facilitating the transition of workers to different industries and better train students to prepare for potential mobility in the future. Trade policy will also be vital in determining how international commerce is shaped. As cross-border e-commerce increases, it will be in the interest of the United States to participate in and lead negotiations that determine future trade rules. The Trans-Pacific Partnership should not simply be abandoned. The next administration should educate both policymakers and the public about the effects of trade openness and the economic and strategic importance of trade agreements for the U.S. economy.

Yong Suk Lee is the SK Center Fellow and deputy director of Korea Program. He leads a research project focused on Korean education, entrepreneurship and economic development.

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Rennie J. Moon has been selected as the 2016-17 Koret Fellow in the Korea Program at Stanford’s Shorenstein Asia-Pacific Research Center (APARC). She will join the center next January to study diversity in higher education and teach a student course.

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Moon is an associate professor at the Underwood International College at Yonsei University in Seoul, South Korea. Her research explores the interrelationships among globalization, migration and citizenship, and internationalization of higher education.

Moon, a graduate of Stanford’s Graduate School of Education, Ph.D. ‘09, has collaborated with Stanford professor Gi-Wook Shin on a multiyear research project that examines diversity in higher education in East Asia. She co-edited the book Internationalizing Higher Education in Korea: Challenges and Opportunities in Comparative Perspective published earlier this year.

Stanford professor Francisco O. Ramirez, an expert on international comparative education and sociology of education, recognized her scholarly contributions to the field.

“Moon is a creative contributor to the ‘world society perspective’ in the social sciences,” said Ramirez, noting that Moon's work has been published in leading journals of international comparative education, Comparative Education Review and Comparative Education.

Supported by the Koret Foundation, the Koret Fellowship brings professionals to Stanford to conduct research on contemporary Korean affairs. In 2015, the fellowship expanded its focus to include social, cultural and educational issues in North and South Korea, and aims to identify emerging scholars working on those areas.

During her fellowship, Moon will also give public talks and be a lead organizer of the Koret Workshop, an international conference held annually at Stanford.

“As an alum, I’m very pleased and excited to spend my sabbatical year at Stanford,” Moon said. “Over the last few years, I’ve been collaborating on various research projects with Professor Shin and other colleagues at APARC. I’m looking forward to a productive fellowship during which I hope to bring these evolving projects to fruition.”

Moon holds a doctorate and master’s degree in international comparative education from Stanford and a bachelor’s degree in French from Wellesley College.

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Lisa Griswold
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South Korea is facing a number of challenges. Not unlike other advanced economies in Asia, the country is confronted with a declining working-age population, reduction in birth rates, and risk of long-term stagnation.

A team of Stanford researchers at Stanford’s Shorenstein Asia-Pacific Research Center (APARC), in collaboration with other scholars from around the world, is increasingly thinking about those challenges and is working on a number of research initiatives that explore potential solutions in leveraging benefits from globalization.

The researchers propose that Korea can extract value from two major movements of people – outflows of its own population (diaspora) and inflows of foreigners (immigrants and visitors), all of whom hold the capacity to build social capital – a network of people who have established trust and in turn spread ideas and resources across borders.

Engaging diaspora

Emigration is traditionally viewed as a loss of human capital – ‘brain drain’ – movement of skills out of one country and into another, but Stanford professor Gi-Wook Shin and Koret Fellow Joon Nak Choi support an alternative view of outward flows of citizens.

Shin and Choi suggest that people who leave their countries of origin but never return can still provide value to their home country through ‘brain linkage,’ which advocates that there is economic opportunity in cross-national connections despite a lack of physical presence. This concept is a focus of their research which was recently published in the book Global Talent: Skilled Labor and Mobility in Korea.

“What we’re trying to do is to extend the thinking – to not just look at potential losses of having your people go abroad but also the potential gains,” Choi said. “Previous studies have found that if you have more of these relationships or ‘brain linkages,’ you have more trade and more flow of innovations between countries.”

People who stay in a host country become participants in the local economy and often conduct influential activities such as starting companies, providing advice and sitting on boards of directors, Choi said, and these transactions enact flows of resources from home country to host country and vice versa.

Choi, who outside of his fellowship is an assistant professor at Hong Kong University of Science and Technology, said that this way of thinking pulls away from a zero-sum view of the world and instead sees it as “more globalized, cosmopolitan and diffuse.”

He leads a research project with Shin focused on global talent and cultural movement in East Asia, and over the past quarter, taught a graduate seminar on the Korean development model.

“Cross-national ties are harder to establish than those that are geographically close, but they provide invaluable means of sharing information and brokering cooperation that may otherwise be impossible on other levels,” said Shin, who is also the director of Shorenstein APARC. “In many ways, social ties can be a good strategy to gain a competitive edge. This is an area we endeavor to better understand through our research efforts on Korea.”

Shin has described his own identity of being a part of the very system they are studying. He grew up in Korea, arrived in the United States as a graduate student and has since stayed for three decades and frequently engages the academic and policy communities in Korea.

One cross-national initiative that he recently started is a collaborative study between scholars at Shorenstein APARC and Kyung Hee University in Seoul. The two-year study evaluates the social capital impact of a master’s degree program at the Korean university that trains select government officials from developing countries.


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An international cohort including many researchers from Stanford’s Shorenstein Asia-Pacific Research Center have been conducting group interviews with international students at Korean and Japanese universities to better understand their motivations to stay or go following their completion of a degree or non-degree program at Korean universities. Their initial results reveal that gaps in cross-cultural understanding and opportunities cause feelings of disassociation, but recent internationalization efforts are helping to address those gaps and support innovation, knowledge sharing and local economic growth. An op-ed on the topic authored by Stanford professor Gi-Wook Shin and Yonsei University associate professor Rennie Moon can be viewed here. Credit: Flickr/SUNY – Korea/crop and brightness applied


Harnessing foreign skilled labor

Globalization has also led to migration of people to regions that lack an adequate supply of skilled workers in their labor force. This new infusion of people is an opportunity to bridge the gap, according to the researchers.

“In order to be successful, countries need a large talented labor pool to invest in,” said Yong Suk Lee, the SK Center Fellow in the Freeman Spogli Institute for International Studies and affiliate of the Korea Program. “Innovation is not something like a technology ladder which has a more obvious and strategic trajectory, it’s more about investing in people and taking risks on their ideas.”

Korea currently has a shortage of ‘global talent’ – individuals who hold skills valuable in the international marketplace. Yet, Korea is well positioned to reduce the shortage.

The country produces a vast amount of skilled college graduates. Nearly 70 percent of Koreans between the age of 25 and 34 have the equivalent of a bachelor’s degree. Korea has the highest percentage of young adults with a tertiary education among Organisation for Economic Co-operation and Development (OECD) countries. Another study found that the foreign student population in Korea has risen by 13 percent in the past five years.

Universities are moving to “internationalize” in seeking to both recruit faculty and students from abroad and to retain them as skilled workers in the domestic labor force. A new book published by Shorenstein APARC Internationalizing Higher Education in Korea: Challenges and Opportunities in Comparative Perspective assesses efforts by institutions in Korea, China, Japan, Singapore and the United States through nine separately authored chapters.

 

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Shin and Yonsei University associate professor Rennie Moon, who served as book editors and chapter authors, found that Korea has on average more outbound students (students who leave Korea to study elsewhere) than inbound students (international students who come to Korea to study). The figure above compares five countries and finds that Korea and China are more outbound-driven while Singapore, Japan and the United States are more inbound-driven.

“For most national and private universities in Korea, internationalization is more inbound-oriented—attracting foreign students, especially from China and Southeast Asia,” said Yeon-Cheon Oh, president of Ulsan University and former Koret Fellow at Shorenstein APARC who co-edited Internationalizing Higher Education in Korea. “In many ways, it’s about filling up students numbers. There needs to be a balance in inbound and outbound student numbers in order for internationalization to have an optimal effect.”

International students that do come to Korea are on average not staying long after graduation, though. The researchers identify reasons being difficulty in adapting to the local culture, inability to attain dual citizenship, language barriers, and low wages in comparison to that of native Koreans; in short – it is not easy to assimilate fully.

These and other barriers facing foreigners in Korea are a focus of a broader research project led by Shin and Moon that aims to propose functional steps for policymakers striving to internationalize their countries and to shift the discourse on diversity.

Developing a narrative

The Korean government has expanded efforts to recruit foreign students to study at Korean universities – many of which now rank in the top 200 worldwide – but addressing education promotion is only one area.

“The challenge is to propose a pathway that rallies around a general narrative,” Lee said, citing a need for internationalization to be coordinated across immigration policy, labor standards, and social safety nets.

An international group of experts in Korean affairs gathered at Stanford earlier this year at the Koret Workshop to address the challenge of creating a cohesive narrative, focused on Korea as the case study. The Koret Foundation of San Francisco funds the workshop and fellowship in its mission to support scholarly solutions to community problems and to create societal and policy change in the Bay Area and beyond.


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The Koret Workshop brings together an international panel of experts on Korean affairs at Stanford. From 2015-2016, the workshops focused on higher education, globalization and innovation in Korea. Above, Michelle Hsieh (far right) speaks during a question and answer session following her presentation on Korean and Taiwanese small and medium enterprises, next to her is former U.S. Ambassador to the Republic of Korea Kathleen Stephens, Stanford consulting professor Richard Dasher, former U.S. foreign affairs official David Straub, and Korea University professor Myeong Hyeon Cho.


The interdisciplinary nature of the workshop was an important aspect, according to Lee, and Michelle Hsieh, one of 27 participants of the conference that covered a range of areas from entrepreneurship to export promotion policies in Korea.

“The workshop demonstrated how internationalization of higher education – and academic research in general – can be achieved by constructing cross-cutting ties,” said Hsieh, who was a postdoctoral fellow at Shorenstein APARC from 2006-07 and is now an associate research fellow at Academia Sinica in Taiwan.

“Participating in the workshop made me realize I really miss the lively and rigorous discussions at Shorenstein APARC, where researchers are interdisciplinary with diverse backgrounds yet focused on a common research interest,” Hsieh said. “I think debate and discussion in that kind of setting can illuminate a completely different take.”

The workshop will result in a book that features multiple areas and policy directions for Korea’s development. The lessons included are also envisioned to apply to other emerging countries facing similar trends of demographic change and economic slowdown. Shorenstein APARC expects to publish the book next year.

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